Singapore listed Marco Polo Marine doubles profits
Singapore listed Marco Polo Marine (Marco Polo) [SGX:5LY] has announced it doubled its quarterly net profit in its third quarter of fiscal 2012 and noted a "strong start" for its bunkering joint venture with Marine Tankers Holdings, Ship & Bunker reports.
Net profit in the nine months ending June 30 was a record high of S$17.5 million (USD $14.1 million) an increase of 1.5% from the entire FY2011 profits of S$17.3 million (USD $13.9 million).
CEO Mr. Sean Lee Yun Feng said the company's joint venture with with Marine Tankers Holdings was "off to a strong start" having secured long term contracts after only taking delivery of the two initial bunkering vessels in July 2012.
"The joint venture is envisaged to provide a stable and growing source of income to the Group from the financial years ending 30 September 2013 and thereafter," he added.
Total revenue for the nine months were up to S$70 million (USD $56.3 million), a 12% increase from the previous FY2011 nine months, but the quarter-on-quarter result of S$14.4 million (USD $11.6 million) was 32% lower than Q3 2011's $21.2 million (USD $17.1).
Ship chartering operations' revenues for the nine months decreased 34.8% from the same period last year to S$15.9 million (USD $12.8 million) as a result of the company's purchase of a 49% interest in PT Pelayaran Nasional Bina Buana Raya (BBR) and subsequent re-flagging for compliance with Indonesia's cabotage law.
"We are encouraged by our commendable set of results, in particular, our record net profit achieved," commented Mr Sean Lee Yun Feng.
"This sterling performance is attributed to the smooth execution of our corporate strategies of staying focused, our ability to tap on the robust offshore oil and gas sector demand and our capability to operate in Indonesian waters through BBR." he added.
The company said its ship repair business is taking on more contracts of increasing scale and complexity, and as charter rates have stabilised in both the offshore vessels division as well as the tugs and barges division, based on the recent enquiries and indications it expects rates to continue to remain stable in the foreseeable future.